Paytm's GMV jumps 129% to Rs 1.66 trillion in October, November on higher festive spends

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Payments and financial services company Paytm witnessed a 129 percent growth in Gross Merchandise Value (GMV) i.e. payments made to merchants through its platform in the months of October and November 2021, as compared to the same period last year, it said on December 13.

The company's GMV rose to Rs 1.66 lakh crore (trillion) in October and November versus Rs 72,800 crore in same period of the corresponding year, Paytm said in a stock exchange filing. This growth was led by the festive season as well as upbeat consumer sentiment, as COVID-induced restrictions were lifted and people stepped out for more purchases.

Paytm's GMV for October stood at Rs 83,200 crore, while that of November rose marginally to Rs 83,400 crore.

The company also witnessed a 414 percent year-on-year growth in the number of loans disbursed through its platform in October and November.

As many as 27 lakh loans were disbursed in the first two months of the third quarter of FY22, as compared to five lakh during the last fiscal year. In October, Paytm disbursed 13 lakh loans, while 14 lakh loans were disbursed in November 2021.

The value of the loans disbursed stood at Rs 1,320 crore as compared t0 Rs 280 crore during the period under review. On November 26, 2021, Paytm launched a new credit card in partnership with HDFC Bank, further to the announcement of their partnership in September 2021, the company said.

The value of loans disbursed November this year stood at Rs 690 crore, while that of October stood at Rs 630 crore.

The company however said that November 2021 operating metrics are not comparable to October 2021 metrics due to festive season impact during October and the difference in the number of days in the two months.

"We believe that Y-o-Y trend is the right comparable for looking at Paytm's business. Furthermore, MoM trends, or even QoQ trends (either for this period or going forward) are generally not the right way to look at our business. This is the reason we show all our numbers on YoY comparisons," Paytm said.

Paytm further said that its monthly transacting users (MTU) consistently grew in FY21, as well as in the first two quarters of FY22.

The trajectory has continued in the Q3FY22 with 632 lakh average MTUs in the first two months of the quarter versus 466 lakh average MTUs in the corresponding period - a growth of 36 percent YoY.

The company has deployed 1.6 million PoS and Sandbox devices in the months of October and November, an increase from five lakh in the same period in 2020.

At 10:52am, the shares of Paytm traded at Rs 1558.00 apiece on the BSE, down 0.55% from the previous close, while the benchmark Sensex was up 255.03 points or 0.43% at 59,041.70.